Generation Mining halts summer drill program at Marathon due to fire restrictions
(Kitco News) - Generation Mining (TSX: GENM; OTCQB: GENMF) today announced that due to an Emergency Area Order from the Ontario Ministry of Energy, Northern Development and Mines, drilling on the company’s Marathon project has been temporarily suspended.
According to the company’s statement, the order is related to the high risk of forest fires in the area. Other exploration activities such as mapping and sampling are continuing.
Gen Mining’s focus is the development of the Marathon project, a large undeveloped platinum group metal Mineral Resource in North America. Gen Mining currently owns an 81.7% interest in the Marathon Project, with the remaining interest owned by Sibanye-Stillwater.
The Feasibility Study estimated that at US$1725/oz palladium, and US$3.20/lb copper, Marathon’s Net Present Value (at 6% discount rate) is approximately C$1.07 billion with a payback of 2.3 years and an Internal Rate of Return of 30%. Up front capital costs were estimated at C$665 million. The mine would produce an estimated 245,000 palladium equivalent ounces per year over a 13-year mine life at an All In Sustaining Cost of US$809 per palladium-equivalent ounce.